New-build flats in Prague more expensive than ever – average asking price exceeds CZK 190,000 for the first time

Average asking prices for new-build flats in Prague have reached a new record, exceeding CZK 190,000 per square metre for the first time. Despite rising prices and difficult financing conditions, demand remains high.

Prague's property market continues to show resilience. In the first nine months of 2026, a total of 5,350 new-build flats were sold in the Czech capital. At the same time, average asking prices reached a new high, exceeding CZK 190,000 per square metre for the first time. The supply of flats has also increased significantly. This is according to a joint market analysis by property developers Trigema, Central Group and Skanska Residential, published last week.

Flat Sales Remain Above the Long-Term Average

Around 1,600 new-build flats were sold in Prague in the third quarter of 2026 alone. Since the beginning of the year, the total has reached 5,350 units. This represents a decline of eleven per cent compared with the same period last year, which was characterised by record sales. Property developers cite rising mortgage interest rates, stricter financing conditions for investment properties and uncertainty about future economic developments as the main reasons for the slight slowdown.

New-build flats were particularly sought after in the Prague 5 and Prague 9 districts, each accounting for around a quarter of all sales. These were followed by Prague 10 with approximately 17 per cent and Prague 8 with around ten per cent. Together, these four districts accounted for around three-quarters of total sales.

Smaller units continue to dominate in terms of flat sizes. Two-room flats with a kitchenette (2+kk) accounted for 45 per cent of sales, while studio flats with a kitchenette (1+kk) made up a further 27 per cent. Due to their lower overall costs, they are particularly popular with both owner-occupiers and property investors.

Photo: Central Group

Asking Prices Rise to Almost CZK 194,000 per Square Metre

Prices for new-build flats in Prague reached new historic highs in the third quarter. The average asking price rose to CZK 193,814 per square metre. This represents an increase of three per cent compared with the previous quarter and almost twelve per cent over the course of a year.

Actual selling prices also continued to rise. They reached an average of CZK 186,408 per square metre, two per cent higher than in the previous quarter and ten per cent above the level recorded a year earlier.

The main factors driving prices include persistently high demand, rising financing costs and high material, labour and land costs. In addition, lengthy approval procedures have been slowing housing construction in Prague for years.

Photo: Central Group

The comparatively cheapest new-build flats were still found in Prague 9 and Prague 10, where average prices ranged between CZK 170,000 and CZK 175,000 per square metre.

Housing in the city centre is significantly more expensive. In Prague 1, the average price exceeded CZK 319,000 per square metre, although the small number of flats sold influences the statistics. This was followed by Prague 2 at around CZK 282,000 and Prague 7 at just under CZK 217,000 per square metre.

Average asking prices now exceed CZK 200,000 per square metre in five of Prague's ten main districts.

The price differences between flat sizes are also striking. Studio flats (1+kk) were the most expensive, averaging more than CZK 210,000 per square metre. For the particularly popular two-room flats (2+kk), the average selling price was around CZK 184,000. Three-room flats with a kitchenette (3+kk) were comparatively cheaper at around CZK 168,000 per square metre.

Mortgage Market Remains Stable Despite High Interest Rates

Developments in the mortgage market also indicate continued strong demand for home ownership. Following a slight slowdown in the summer, mortgage lending activity has stabilised again.

Between January and September 2026, banks and building societies in the Czech Republic issued new mortgage loans totalling CZK 301.4 billion. This was around CZK 66 billion more than in the same period last year.

Photo: Tierra Mallorca | Unsplash

Largest Supply of Flats in Ten Years

While prices continue to rise, supply in Prague's new-build housing market has improved significantly. At the end of September, around 7,200 new flats were available for sale in the capital. This was twelve per cent more than in the previous quarter and 26 per cent more than a year earlier, bringing supply to its highest level in ten years.

Supply was particularly high in Prague 5, which accounted for around 22 per cent of all available new-build flats. Prague 9 and Prague 10 followed with 19 per cent each. Together, these three districts accounted for approximately 60 per cent of the total supply.

In the city centre, however, the choice remains limited. Prague 1 and Prague 2 together accounted for just 2.6 per cent of all available new-build flats.

Prague Needs at Least 10,000 New Flats per Year

Despite the increase in supply, housing construction in the Czech capital continues to fall well short of long-term demand. According to the Czech Statistical Office, a total of 4,848 flats in apartment buildings in Prague were approved between January and August 2026. This represents an increase of almost 27 per cent compared with the same period last year.

However, these figures are not sufficient to address the housing shortage that has persisted for years. According to calculations by the Prague Institute of Planning and Development (IPR), at least 10,000 new flats would need to be approved and built in the capital each year to meet long-term demand.